Titan Q4 results fall short of analysts expectations; should investors worry?
Titan share price NSE, Titan share price BSE: Titan shares slumped on Monday after the Bengaluru-headquartered Tata group giant-whose popular brands include Fastrack, Sonata, Octane, Tanishq, CaratLane, Zoya and EyePlus-reported a 7.1 per cent year-on-year increase in net profit to Rs 786 crore for the fourth and final quarter of the financial year 2023-24. Its quarterly EBITDA gew 6.2 per cent to Rs 1,109 crore but margin contracted by 90 basis points to 9.9 per cent.
Titan share price: Titan shares tumbled on Monday after the Tata group jewellery and watch maker staged a largely weak performance for the January-March period, prompting several brokerages to lower their targets for its stock. The stock finished 7.2 per cent lower at Rs 3,281.7 apiece on BSE.
After market hours on Friday, Bengaluru-headquartered Titan—whose popular brands include Fastrack, Sonata, Octane, Tanishq, CaratLane, Zoya and EyePlus—reported a 7.1 per cent year-on-year increase in net profit to Rs 786 crore with 16 per cent growth in revenue to Rs 11,257 crore for the fourth and final quarter of the financial year 2023-24.
Its quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 6.2 per cent to Rs 1,109 crore but margin contracted by 90 basis points to 9.9 per cent.
According to Zee Business research, Titan's March-quarter net profit was estimated at Rs 767 crore, revenue at Rs 11,354 crore, EBITDA at Rs 1,177 crore, and margin at 10 per cent.
The Tata group company's jewellery margin also fell short of expectations and analysts believe it is expected to remain under pressure in the near term amid stiff competition.
Titan's margin from its jewellery business stood at 12.1 per cent. Zee Business analysts had pegged the margin at 12.8 per cent.
What brokerages make of Titan results
| Brokerage | Rating | Target | Upside vs May 3 close |
| CLSA | Buy | Reduced to Rs 4,270 from 4,547 | 20.8% |
| Morgan Stanley | Equal-weight | Raised to Rs 3,526 from Rs 3,290 | -0.3% |
| Jefferies | Hold | Rs 3,600 | 1.8% |
| JPMorgan | Overweight | Reduced to Rs 3,850 from Rs 3,950 | 8.9% |
| Goldman Sachs | Buy | Reduced to Rs 3,950 from Rs 4,075 | 11.7% |
| Citi | Neutral | Reduced to Rs 3,650 from Rs 3,850 | 3.2% |
Catch all the latest stock market updates here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.